Markets have not yet reacted to US economic statistics released in pre-market trading today.
Let's start with an important component of the personal consumption expenditures (PCE) price index. Excluding the volatile food and energy components, the PCE price index slowed down in February for the first time since autumn last year. The indicator rose by 0.4% after climbing by 0.5% in January. On an annual basis, the index added 5.4% in February against an expected rise of 5.5% and the previous value of 5.2%.
After evaluating the data provided, it can be concluded that inflationary pressure has eased slightly. Nevertheless, it remains a major factor forcing the US Federal Reserve to further raise interest rates. The only question that remains is the pace of interest rate hikes - 0.25% at each meeting or 0.50% at once.
Besides, the US reported data on jobless claims for the past week. This indicator is also of great importance. It shows the situation in the labor market. According to the data presented, initial unemployment claims increased to 202,000, surpassing the forecast of 197,000 claims. Another negative factor is that the previous week's level was revised upwards to 188,000.
In general, the statistics provided are not critically downbeat as the figures remain close to the highest values over the past decades.
What will be the market reaction after the US session opens?
We suppose that the stock market may kick off trading without any significant movements. Likewise, the foreign exchange market will hardly show noticeable changes. The news is likely to be ignored as market participants are awaiting important data on the US Labor Department's employment report to be released tomorrow. Significant deviations from the projected readings may have both a negative and a positive impact on the market.
